BOARD OF LOS ANGELES DEPARTMENT OF CONVENTION AND TOURISM DEVELOPMENT COMMISSIONERS
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1 BOARD OF LOS ANGELES DEPARTMENT OF CONVENTION AND TOURISM DEVELOPMENT COMMISSIONERS Commissioners: Jon F. Vein, President; Ray Bidenost, Vice President; Jeremy Bernard; Stella T. Maloyan; Otto Padron Members of the public who wish to speak during the meeting must submit a Request to Speak form to the Board Secretary prior to the commencement of the public comments for each agenda item of interest. Comments by the public on matters not identified on the agenda, but within the subject matter jurisdiction of the Commission, will be heard only during the item designated as Public Comment. Public speaking will be limited to two minutes per speaker, unless the presiding officer grants some other amount of time before the commencement of the public comment. Regular Meeting Wednesday, February 3, :00 a.m. 10:30 a.m. Los Angeles Convention Center 1201 S. Figueroa Street, L.A., CA Executive Board Room 1. CALL TO ORDER / ROLL CALL 2. PUBLIC COMMENT 3. ACTION ITEMS: a. Approval of the meeting minutes from January 20, DISCUSSION ITEMS: a. AEG Monthly Update December Brad Gessner, AEG i. Commercial filmed at LACC Ellen Schwartz, AEG b. LATCB Monthly Update December Darren Green, LATCB i. New LATCB Advertising Campaign Don Skeoch, LATCB c. Expansion & Futurization Update Bud Ovrom, CTD 5. ADJOURNMENT AGENDA FORECAST / SPECIAL TOPICS: February 17, CIP Update Tom Fields, CTD - Expansion & Futurization Update Bud Ovrom, CTD Materials related to an item on this agenda submitted to the Board of Los Angeles Convention and Tourism development after distribution of the agenda packet are available for public inspection in the Executive Office of the Los Angeles Convention Center, 1201 S. Figueroa Street, Los Angeles, CA 90015, during normal business hours. As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services and activities.
2 DRAFT BOARD OF LOS ANGELES CONVENTION AND TOURISM DEVELOPMENT COMMISSION Regular Meeting Minutes January 20, :00 a.m. The Board of Los Angeles Convention and Tourism Development Commission (Board) convened a special meeting on Wednesday, January 20, 2016 at 9:00 a.m. at the Los Angeles Convention Center (LACC), located at 1201 S. Figueroa Street, Los Angeles, CA 90015, in the Executive Board Room. PRESENT: President Jon F. Vein Vice President Ray Bidenost Commissioner Jeremy Bernard (arrived at 9:03 am) Commissioner Stella T. Maloyan ABSENT: Commissioner Otto Padron PRESENTERS: Tom Fields, CTD Brad Gessner, AEG Samuel Hughes, EWDD Bud Ovrom, CTD Item 1. Call to Order / Roll Call President Vein called the meeting to order at 9:00 am. Item 2. Public Comment None Item 3a. Approval of Special Meeting Minutes from January 8, 2016 UNANIMOUSLY APPROVED Item 3B. NBA 2018 Board Report # Recommend that the Board adopt the proposed 2018 NBA All-Star Weekend discount request. UNANIMOUSLY APPROVED Item 4a. AEG November Employee of the Monthly Mr. Brad Gessner announced Gilbert Arellano as the employee of the month for November.
3 Board of Los Angeles Convention and Tourism Development January 20, 2016 Page 2 of 2 Item 4bi. Expansion and Futurization Update - Overview Mr. Bud Ovrom provided an update of the project, requesting a clarification of the dual path solution recommended by the CAO and the need for risk mitigation. Mr. Ovrom also recommended BOE as the lead agent for the EIR. Mr. Ovrom distributed an Activity/Milestone schedule. There was discussion of the proposed residential component as a concern due to noise, traffic, Air BNB, land locking of the center as well as other concerns. Public Comment on item 4bi Terri Tonnies spoke to the impact on clients if the project is delayed, noting that a hotel is critical to show managers, and that surrounding space is needed for outdoor programming. Taken Out Of Order Item 4c. CIP Update Mr. Tom Fields provided an update on the FY CIP Projects. Mr. Fields noted that the projects (with the exception of one) will not be affected by either proposed expansion plan. Item 4bi. Expansion and Futurization Update Hotel RFI Update Mr. Samuel Hughes provided an update on the hotel RFI. Mr. Hughes noted that Strategic Advisory Group was selected to prepare the RFI and that on January 26, 2016 an Open House would be held at the Los Angeles Convention Center for interested developers. Information on the RFI is available on LABAVN and the EWDD website. ADJOURNMENT The meeting was adjourned at 9:45 a.m.
4 Los Angeles Convention Center Monthly Status Report December 2015 Brad Gessner 1
5 EMPLOYEE OF THE MONTH December 2015 Jonathan Valladares Security Supervisor 2
6 LEADER OF THE 4 TH QUARTER 2015 Adrienne Hall Event Manager 3
7 LACC DECEMBER 2015 EVENTS DATE EVENT ATTENDANCE Dec. 4-6 Ski Dazzle 9,000 Dec. 5-6 Sikh Study Circle 6,000 Dec International Drone Expo 7,000 Dec LA Pet Expo 3,000 Dec. 16 Naturalization 6,875 Dec L.A. Veterans Stand Down 7,500 Dec. 19 El Sembrador 2,000 Dec Aloja Spirit Productions 8,000 Dec. 30 Hawkey Huddle University of Iowa 20,000 TOTAL: 69,375 4
8 LACC DECEMBER 2015 FILMING AND PHOTO EVENTS Date Name Location Amount Dec. 3 4 Target Still Shoot Various Exterior $8,100 Dec Honda Halls G,H $68,905 Dec. 11 First Shot Pico Drive $8,975 Dec. 15 Home VFX Men s Restroom $1,900 Dec Aero Mambo Kentia/Kentia Carpet $13,260 Dec. 15 Top Gear Concourse Plaza/Hall K $9,630 Dec. 19 First Shot Venice Garage $4,200 TOTAL FILMING: $114,970 (December $50,295) 5
9 LACC DECEMBER 2015 FINANCIALS Operating Deficit : $351K (before approved A & I and Capital Projects) $591K favorable to prior year and $611K favorable to budget Revenues: $1.4 Million $350K favorable to budget year and $496K favorable to prior year 6
10 LACC DECEMBER 2015 FINANCIALS Expenses: $1.7 Million for December (excluding A & I projects) $94K below prior year; $262K below budget A & I projects and Capital: Concourse Foyer Carpet installation (2016 approved CIP project) Booster Pump Package (2016 approved CIP project) Waterless Urinal upgrade (2015 approved A & I Project) 7
11 DECEMBER OCCUPANCY December Occupancy % % % % 8
12 YTD OCCUPANCY PricewaterhouseCoopers report on Convention Center occupancy states: It has been recognized industry-wide that the practical maximum exhibit hall occupancy rate is approximately 70 percent and the efficient range is considered to be approximately 50 to 60 percent. Occupancy levels less than 50 percent generally suggest the existence of marketable opportunities or open dates, while an occupancy rate above 60 percent increases the potential for lost business or turn-aways. 9
13 ECONOMIC IMPACT EXAMPLE Economic impact is composed of the summation of three types of spending: 1. Spending Outside the Venue: The spending in the community by event attendees. Does not include attendee spending inside the venue. This spending is broken into two categories: High impact spender: Event attendees that stay in a hotel Low impact spender: Event attendees that are day trippers 2. Spending Inside the Venue: The venue's total direct revenue that is attributed to an event. (Information reported in monthly Financial results) 3. Indirect and Induced spending: Spending by the destinations' venue, travel industry businesses on goods and services from local suppliers on behalf of a given event. 10
14 ECONOMIC IMPACT EXAMPLE Consumer event hosted at LACC has attendance of 6,000. 5% are high impact spenders and 95% are low impact spenders. The event generated $275K in revenue for the venue in ticket sales, parking, food purchases, electrical, and A /V. Direct Spending outside the venue: High Impact attendees (6,000 * 5% * $350) = $105K Direct Spending outside the venue: Low impact attendees (6,000 * 95% * $45) = $256,500 Total Direct Spending outside the venue: $361,000 Total Direct Spending inside the venue: $275,000 Total Direct Spending: $636,000 Total Spend(economic Impact) : Direct Spending * Spending Multiplier of ,000 * 1.7 = 1,081,200 Indirect Spending: Total Spend Direct Spend = 445,200 11
15 PROJECTED DECEMBER ECONOMIC IMPACT $5.5 million projected Spending Generated by LACC Events Calculations based on formulas provided by IAVM (International Association of Venue Management) 12
16 FILMING S AT LACC Popular TV Shows Filmed at LACC 14
17 FILMING S AT LACC Popular Movies Filmed at LACC 15
18 Star Wars Global Press Conference (Concourse Hall) 18
19 Capital One Commercial Harsh Reality (2014) 19
20 CTD Board of Commissioners Meeting February 3, 2016
21 Citywide Convention Sales Update Darren K. Green Senior Vice President, Sales
22 Citywide Convention Sales FY 15/16 (July 1, 2015 to January 28, 2016) Booking Production LOI Production LOIs Actual Booked Room Nights Produced RNs Actual FY 15/16 Goal 38 FY 15/16 YTD 19 FY 15/16 Goal 351,000 FY 15/16 YTD 288,763 FY 14/15 Goal 38 FY 14/15 STLY 20 FY 14/15 Goal 351,000 FY 14/15 STLY 193,911
23 Citywide Convention Sales FY 15/16 (July 1, 2015 to January 28, 2016) Lead Production Lead Production Leads Actual FY 15/16 Goal 220 FY 15/16 YTD 125 Sales Pipeline- Future Years FY 15/16 YTD 130 Leads, representing 1,658,287 room nights FY 14/15 Goal 210 FY 14/15 STLY 123 FY 14/15 YTD 148 Leads, representing 1,856,529 room nights
24 Citywide Convention Sales Booked Room Nights 2016 to 2026 Calendar Year Arrival Date 19 Events booked during YTD FY 15/16 (July 1, 2015 January 28, 2016) will generate 288,763 TRNs Dated January 28, 2016
25 Recent Booking Tableau Software - North American Customer Conference 2019 Company HQ: Seattle, WA September 9-13, 2019 Attendance: 15,000 Peak Rooms: 9,000 Total Rooms: 40,650 Las Vegas 2015 Keynote - Neil Degrasse Tyson
26 Upcoming Guest Speakers from Los Angeles Tourism & Convention Board March Wendy Kheel Vice President, Tourism Insights April Jamie Foley Vice President, Global Communications May Barbara Kirklighter Vice President, Revenue Strategy June Erika Swenson Director, Membership
27 Marketing Update Don Skeoch Chief Marketing Officer John Boudouvas Vice President, Marketing
28 Brand Marketing John Boudouvas VP, Marketing Los Angeles Tourism & Convention Board
29 ADVERTISING & PROMOTIONS FY 16 Media Overview FY Creative Approach 2
30 ADVERTISING & PROMOTIONS Media Plan Strategies 360 Approach 1. Invest over 50% of the budget into digital media 2. Budget split 84/16 long-haul vs. short-haul markets 3. Concentrate 62% of the paid media investment during the first four weeks to drive hotel bookings 4. Focus 50% of broadcast placements on highly rated Primetime/Sports/Specials 5. Target neighborhood outdoor advertising placements 6. Align growing online video with broadcast - Hulu / YouTube, a CPCV/engagement models 7. Extend the Shazamable video to Online Radio with BORNS/ Electric Love 8. Align paid social media investment with other paid media, ex. Twitter & Broadcast and Instagram & OOH 9. Maintain overall online travel agent investment to drive towards overnight room night goals
31 ADVERTISING & PROMOTIONS Audience & Target Markets Target Upper Millennials (25 44) $75,000+ HH Income & intent to travel Maximize by targeting the most efficient ROI markets Long-Haul Markets (% of Overall LATCB domestic visitation): New York (7.7%) Chicago (3.6%) Washington DC (2.7%) Short-Haul Markets (% of Overall LATCB domestic visitation): San Francisco (12%) San Diego (7.2%) Sacramento (4%) Fresno (3.2%) Markets represent 40% of overall domestic visitation
32 ADVERTISING & PROMOTIONS Media Mix Long Haul Budget by Tactic Short Haul Budget by Tactic 3% 8% 8% Broadcast Direct 19% 13% Direct 10% 41% Native/Content Online Radio Online Video 10% 14% Native/Content Online Radio Online Video OOH OTA 5% OTA Programmatic Programmatic Social 16% Social 22% 17% 3% 6% 5% Overall Budget: $4,208,088 Overall Budget: $791,912
33 ADVERTISING & PROMOTIONS Media Mix Tactic 2/29 3/7 3/14 3/21 3/28 4/4 4/11 4/18 Budget Broadcast $1,735,000 OOH $430,000 Long-Haul OTA $323,529 Hulu $482,647 YouTube $199,058 Online Radio $129,118 Native/Content $253,324 Direct Buys $182,706 Programmatic $122,706 Social $350,000 Total $4,208,088 Tactic 2/29 3/7 3/14 3/21 3/28 4/4 4/11 4/18 Budget Short-Haul OTA $176,471 YouTube $132,706 Online Radio $35,000 Native/Content $111,970 Direct Buys $106,118 Programmatic $79,647 Social $150,000 Total $791,912
34 ADVERTISING & PROMOTIONS Creative Agency & Team
35 ADVERTISING & PROMOTIONS 360 Creative Overview Advertising drops: Feb. 29 Shazamable TV (Broadcast & Digital) Epic Sweepstakes to L.A. with private BØRNS concert Spontaneous Trip Giveaways on TV Social Media push Media Event kickoff: March 2 Top 50 NYC media outlets Top L.A. chef and overview of campaign
36 ADVERTISING & PROMOTIONS CREATIVE MESSAGING
37 ADVERTISING & PROMOTIONS
38 ADVERTISING & PROMOTIONS
39 ADVERTISING & PROMOTIONS
40 ADVERTISING & PROMOTIONS
41 ADVERTISING & PROMOTIONS
42 ADVERTISING & PROMOTIONS
43 ADVERTISING & PROMOTIONS
44 ADVERTISING & PROMOTIONS
45 ADVERTISING & PROMOTIONS
46 ADVERTISING & PROMOTIONS
47 ADVERTISING & PROMOTIONS
48 ADVERTISING & PROMOTIONS Out of Home Creative Reinforce Neighborhoods
49 THANK YOU! John Boudouvas VP, Marketing Los Angeles Tourism & Convention Board
50 Thank you
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